WASHINGTON (Dow Jones) ? Bermuda-based Scottish Re Group Ltd. said yesterday its Scottish Re (Dublin) Ltd. subsidiary entered into an agreement with a group of lenders last week in which the lenders agreed to provide a $30 million three-year revolving, unsecured letter of credit facility to Scottish Dublin.

According to a filing with the Securities and Exchange Commission, the credit facility may be increased up to $50 million.

The filing said the credit facility will be used to issue letters of credit to back reinsurance obligations of Scottish Dublin. Standby letters of credit issued under the credit facility will have a maximum term of one year from the date of issuance.

The letters of credit will be issued by Bank of America, and each lender will purchase an irrevocable and unconditional participation in each letter of credit, according to the filing.

The credit facility will terminate on July 14, 2008.